Text Size

-

+

reset

Video: Hoyer 'not enthusiastic' about deal

Graham: Cliff shows dysfunction

Liberals are chafing at the thought of letting more wealthy earners escape higher rates. Conservatives are aghast at letting any tax hike take effect. Moderates in both parties say they can live with it but emphasize they’re not fans, either.

Distaste for the tentative agreement, of course, doesn’t mean it’s destined for failure. Other major deals, such as the Budget Control Act, didn’t win rave reviews from either party, but passed nonetheless.

“I’ll probably be a ‘yes’ vote, even though I don’t like it,” Sen. Lindsey Graham (R-S.C.) told reporters after details of the tentative agreement began to go public. “I don’t like the idea of raising tax rates, I don’t think it’s good for the economy, but it’s better than going over the cliff.”

Senate Minority Leader Mitch McConnell (R-Ky.) announced midday that he and Vice President Joe Biden had reached a tentative agreement on the tax issues — and pointed out that it was “not easy to get to.” The two men with a history of last-minute deal-making had closed in on an agreement that would raise the marginal income tax rates to 39.6 percent on individual income more than $400,000 and households that earn more than $450,000.

In the final hours of 2012, negotiators reached a deal to avert the fiscal cliff that had sign-off from Democratic leaders in both chambers. Vice President Joe Biden was dispatched to Capitol Hill to sell wavering Democrats on the agreement.

“There are many, many reasons people dislike portions of this bill, but there’s close to unanimity that it’s better than going over the cliff so you’re going to get a very strong vote here,” predicted New York Sen. Chuck Schumer, the third-ranking Senate Democrat, after the 90-minute meeting with Biden and Senate Democrats.

But as details emerged throughout the day, objections flew. Liberal Sen. Tom Harkin (D-Iowa), who’s been highly critical of other tax and budget agreements, called the emerging compromise “grossly unfair” and a “tough pill to swallow.”

“No deal is better than a bad deal,” he said, “and this looks like a very bad deal.”

Fellow liberal Sen. Sheldon Whitehouse told reporters that upping the threshold for tax hikes to $450,000 for households was “not a great sign.”

“Obviously it takes a lot of revenue off the table that will lead to more cuts in other things,” the Rhode Island Democrat said.

From the other side of political divide, Sen. Rand Paul (R-Ky.) railed against the notion of any tax hike to resolve the fiscal cliff.

“You will take money from the productive sector, which is the private sector, and put it into the nonproductive sector, which is Washington,” Paul said in a floor speech. “So if you want ditches to be dug and filled up again, send more money to Washington.”

Rubbing salt in the GOP wound was President Barack Obama’s suggestion Monday afternoon to use revenues from any agreement to turn off the $109 billion in automatic spending cuts. Negotiators ultimately agreed to stave off the sequester by two months with new spending reductions and government revenue, but Obama’s initial comments at the White House had riled up Republicans who saw his remarks as unhelpful.

“We did the sequester to meet the goal of $2.1 trillion in cuts,” Sen. Johnny Isakson (R-Ga.) said after Obama’s speech. “To reduce those cuts would only dramatically make our problem worse rather than better. So I don’t agree with the president.”

Sen. John McCain (R-Ariz.), Obama’s 2008 rival, said the president’s proposal on the so-called sequester could run into major resistance from Republicans on Capitol Hill.

“It’s just going to be very difficult for many of us and also for people in the House of Representatives,” McCain said. “Why the president chose to basically act in a more confrontational fashion while these negotiations are not only going on, but the result has to be voted on, is something that bewilders me.”

But other lawmakers – particularly moderates — said they were prepared to sign off on a deal that would prevent a steep plunge off the fiscal cliff. Sen. Susan Collins (R-Maine), a key moderate voice among Senate Republicans, called the $450,000 threshold a “reasonable” compromise as long as those revenues were dedicated to debt reduction.

“It’s not my first choice,” added Sen. Joe Lieberman (I-Conn.) of the $450,000 mark. “I think [$250,000] is a better standard. But if that’s what it takes to get an agreement to avoid the cliff, I’ll support it.”

Others simply sounded relieved by any sign of progress.

“Anything,” said Sen. Orrin Hatch (R-Utah), “is better than where we were two days ago.”

Said Sen. Kay Bailey Hutchison (R-Texas): “No one is going to say this is wonderful. The Democrats won’t, and the Republicans won’t. But did our negotiators do a really strong job … ? I think they did.”

"So the left, right and tea party are all unhappy. Then it is probably a fair deal overall for the American people."

GW Bush will not be unhappy. He seems to have come out way ahead on this deal. The Democrats are making 98% of Bush's tax cuts permanent, thus vindicating his principles. They need to give Bush proper credit, perhaps dedicate the bill to him?